The global sports drink market is expected to grow at a CAGR of 4.48% over the forecast period to reach a total market size of US$31.976 billion by 2025, increasing from US$24.581 billion in 2019. Sports drinks are functional drinks specifically designed to help athletes and other active people hydrate before, during, and after exercise (source: British Soft Drinks Association). Sports drink are widely available and are preferred among the athletes as they contain water and electrolytes like sodium and potassium which needs replenishment when the body loses water and electrolytes after a heavy workout or sports activity. Growing health awareness including the importance of hydration in the human body is one of the major drivers driving the growth of the global sports drink market. However, concerns regarding the excessive intake of sports drink leading to the possibility of teeth erosion may have a significant impact on restraining the market growth among the end-users.
Expanding the sports industry coupled with the increasing number of sports events is driving the growth of the market during the forecast period
The number of sports events has been increasing globally as there is increasing investment in the sports industry over the years. The number of sports events that are being broadcast has also risen dramatically and is expected to increase even more which is compelling the market players to invest more in the sports industry during the forecast period. In fact, according to the Chinese Athletic Association, 328 marathons with 2.8 million runners were held in China in 2017 alone compared with only twenty-two races in 2011, in the total number of running events increased to 1102 races. Furthermore, due to the increasing number of sports events, there is increasing investment in sports drinks my major market players in form of promotion and new product launches which is further anticipated to propel the market growth opportunities in the coming years.
Also, the sports industry in Japan is growing at a good pace. With the country set to stage the Rugby World Cup in 2019 and the Olympics in 2020 (which is now postponed due to the COVID-19 pandemic), the government and private players are increasingly focusing on expanding sporting activity and infrastructure in the country, and also promoting Japanese sports oversees. For instance, in July 2018, the Ministry of Economy, Trade, and Industry (METI), Japan Sports Agency, Japan External Trade Organization (JETRO), and Japan Sports Council collaborated for popularizing Japanese sports and promotion of sports industry overseas.
Expanding retailing business-like convenience stores
In recent years, convenience and departmental stores with supermarkets have witnessed an increase in sales. The development and growth of convenience stores and other retail businesses are directly related to economic growth and speed of urbanization which is projected to propel the market over the forecast period. Besides, with the growing number of smartphone users, time spent on the internet also an increase that drives the growth of e-commerce platforms which is also opening the scope of distribution of the sports drink.
North America is holding a significant share in the market
By geography, the sports drink market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in countries like the Canada and United States. In addition, a growing number of health-conscious population coupled with the changing lifestyles are the factors boosting the demand for the product, and the rising availability of a variety of flavors are further expected to drive the market in the region.
The Asia Pacific region is holding huge growth potential due to the presence of a significant young population in the region. Good growth of the sports industry in countries like China and Japan is playing an important role in the burgeoning demand for sports drinks and the region is also expected to hold major sports events in the coming years which is further boosting the demand for a sports drinks. Growing consumer awareness regarding the health benefits of sports drinks coupled with the product development of organic sports drinks has also triggered market growth opportunities in the region over the forecast period. Furthermore, rising disposable incomes and living standards are encouraging Chinese and Indians to adopt the Western lifestyle.
Prominent key market players in the sports drink market include PepsiCo Inc., The Coca-Cola Company, SoBe, Danone S.A., and Britvic PLC, Steric Trading Pty Ltd, Lucozade Ribena Suntory, BA Sports Nutrition, LLC, Otsuka Pharmaceutical Co., Ltd and Fraser and Neave, Limited. The number of players in the sports drink market is large and growing with the opportunity to generate significant revenues as a result of growing demand. Key players in the market are seen to adopt differentiated strategies and are either looking to expand their market portfolio with investments in the development of the new product line, or some companies are opting for mergers, acquisitions, and strategic partnerships to expand their market presence and/or expand their product line. In addition, market players are investing heavily in research and development and product launch of innovative, organic, and other flavored sports drinks in the market. For instance, In April 2019, Coca-cola will launch its global sports drink brand PowerAde in India by June ahead of the ICC World Cup in order to compete with PepsiCo’s Gatorade. Also, In August 2018, Coca-cola announced it had purchased a stake in sports drink BodyArmor, making the latest move to diversify its beverage portfolio. Major market players in the global sports drink market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of this important player in the global sports drink market.
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